2016 Annual Report For Web 7.3MB

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
[in thousands of Canadian dollars, except where otherwise noted and per share data]
December 31, 2016
1. ORGANIZATION
The consolidated financial statements of Ag Growth International
Inc. [“Ag Growth Inc.”] for the year ended December 31, 2016 were
authorized for issuance in accordance with a resolution of the directors
on March 14, 2017. Ag Growth International Inc. is a listed company
incorporated and domiciled in Canada, whose shares are publicly traded
on the Toronto Stock Exchange. The registered office is located at 198
Commerce Drive, Winnipeg, Manitoba, Canada.
2. OPERATIONS
Ag Growth Inc. conducts business in the grain handling, storage and
conditioning market.
Included in these consolidated financial statements are the accounts of
Ag Growth Inc. and all of its subsidiary partnerships and incorporated
companies [together, Ag Growth Inc. and its subsidiaries are referred to
as “AGI” or the “Company”].
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
STATEMENT OF COMPLIANCE
These consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards [“IFRS”]
as issued by the International Accounting Standards Board [“IASB”].
BASIS OF PREPARATION
The consolidated financial statements are presented in Canadian
dollars, which is also the functional currency of the parent company,
Ag Growth Inc. All values are rounded to the nearest thousand. They
are prepared on the historical cost basis, except for derivative financial
instruments, assets held for sale and available-for-sale investment,
which are measured at fair value.
The accounting policies set out below have been applied consistently to
all periods presented in these consolidated financial statements.
EMPLOYEE BENEFITS
Certain employees are covered by defined benefit pension plans and
certain former employees are also entitled to other post-employment
benefits such as life insurance. The Company’s defined benefit plan
asset (obligation) is actuarially calculated by a qualified actuary at the
end of each annual reporting period using the projected unit credit
method and management’s best estimates of the discount rate, the
rate of compensation increase, retirement rates, termination rates
and mortality rates. The discount rate used to value the defined benefit
obligation for accounting purposes is based on the yield on a portfolio
of high-quality corporate bonds denominated in the same currency
with cash flows that match the terms of the defined benefit plan
obligations. Past service costs (credits) arising from plan amendments
are recognized in operating income in the year that they arise. The
actuarially determined net interest costs on the net defined benefit plan
obligation are recognized in interest cost for the defined benefit plan.
Actual post-employment benefit costs incurred may differ materially
from management estimates.
The fair values of plan assets are deducted from the defined benefit plan
obligations to arrive at the net defined benefit plan asset (obligation).
When the plan has a net defined benefit asset, the recognized asset is
limited to the present value of economic benefits available in the form
of future refunds from the plan or reductions in future contributions to
the plan [the “asset ceiling”]. If it is anticipated that the Company will
not be able to recover the value of the net defined benefit asset, after
considering minimum funding requirements for future service, the
net defined benefit asset is reduced to the amount of the asset ceiling.
When the payment in the future of minimum funding requirements
related to past service would result in a net defined benefit surplus
or an increase in a surplus, the minimum funding requirements are
recognized as a liability to the extent that the surplus would not be fully
available as a refund or a reduction in future contributions.
Remeasurements including actuarial gains and losses and the impact
of any minimum funding requirements are recognized through other
comprehensive income.
Current employee wages and benefits are expensed as incurred.
REM
2014
REM has lead the grain
vacuum industry over the last
40 years. REM produces top
of the line, quiet, efficient,
high capacity GrainVacs with a
broad line of accessories.
73 CONSOLIDATED FINANCIAL STATEMENTS
FIELD TO CONSUMER
2016 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS 06